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U.S. bans on chip software sales to China cause Synopsys and Cadence stocks to plummet.
On May 28, 2025, U.S. chip design software companies Synopsys and Cadence Design Systems saw their stocks drop significantly after President Trump ordered a halt on selling crucial software to China.
This move aims to curb China's progress in developing advanced chips, impacting the semiconductor industry and potentially reducing U.S. companies' revenue from Chinese markets.
Synopsys stock fell 9.64% to $462.43, while Cadence's dropped 10.67% to $288.61.
Cadence's shares had already been trading at a high multiple, making them vulnerable to geopolitical events.
The company's China revenue in 2024 was $573 million, or over 12% of overall revenue.
Las prohibiciones estadounidenses sobre las ventas de software de chips a China hacen que las acciones de Synopsys y Cadence caigan en picado.